Section 393 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Serial number 8 of the Table in section 393(1) of the Income-tax Act, 2025, headed "Other cases", has six sub-rows: sums under a life insurance policy, purchase of goods, total income of a specified senior citizen, benefits and perquisites from business or profession, sales through an e-commerce platform, and transfer of a virtual digital asset. Six Notes follow. This article sets out each row and each Note as printed, as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026.
Life insurance sum (8(i)): 2% on the income comprised in the sum, threshold Rs. 1,00,000. Purchase of goods by a buyer (8(ii)): 0.1%, on the sum exceeding fifty lakh rupees (Note 1). Specified senior citizen (8(iii)): rates in force, by a specified bank. Business benefit or perquisite (8(iv)): 10% of value, threshold Rs. 20,000. E-commerce operator (8(v)): 0.1% of gross amount, threshold Nil. Virtual digital asset (8(vi)): 1%, threshold Nil.
How the Table is applied
Under section 393(1), where a sum of the nature in column B is credited, paid or distributed by the person in column C during the tax year to a resident, the person responsible for paying deducts tax on the entire amount where the amount or aggregate exceeds the threshold in column D (or on the sum as per Note 1 for serial number 8(ii)), at the rate in column D, at the earlier of credit and payment, subject to sub-sections (4), (5), (6), (8) and (9). The overview is in our post on section 393; the earlier rows are in the articles on commission, rent and property and on contractors, professional fees and dividend. The deduction from salary is in section 392. The earlier Act's provisions are mapped in our TDS sections mapping note (see our note on where the earlier Act's provisions sit in the 2025 Act). Section 393 was amended by section 84 of the Finance Act, 2026. Later amendments, rules and notifications should be checked.
For the compliance side of these deductions, see our page on TDS compliance.
Serial number 8, "Other cases" (each cell as printed)
| Serial number | Nature of income or sum | Payer | Rate | Threshold limit |
|---|---|---|---|---|
| 8(i) | Any sum under a life insurance policy, including the sum allocated as bonus on such policy, other than the amount not includible in the total income under Schedule II (Table: serial number 2) | Any person | 2% on income comprised in such sum | Rs. 1,00,000 |
| 8(ii) | Any sum exceeding fifty lakh rupees for purchase of any goods | Any person, being a buyer | 0.1% | As per Note 1 |
| 8(iii) | Total income of a specified senior citizen after giving effect to deduction allowable under Chapter VIII and rebate allowable under section 156 | Specified bank | Rates in force | As applicable |
| 8(iv) | Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident | Specified person | 10% of value or aggregate of values of such benefit or perquisite | Rs. 20,000 |
| 8(v) | Any sum on account of sale of goods or provision of services by an e-commerce participant, facilitated by an e-commerce operator through its digital or electronic facility or platform | Any e-commerce operator | 0.1% of gross amount of such sale or services or both | Nil |
| 8(vi) | Any sum by way of consideration for transfer of a virtual digital asset | Any person | 1% | Nil |
In the copy consulted a page break and a repeated header fall between 8(iv) and 8(v); the cells were rebuilt from the lines on either side, and the rates and thresholds agree with the Notes. "Rates in force" (section 2(90)) is not a figure and none is stated here.
The Notes (as printed)
Note 1. (a) Deduction under serial number 8(ii) does not apply to a transaction on which tax is deductible or collectible under any other provision of the Act. (b) Tax shall be deducted on the sum exceeding fifty lakh rupees. So the threshold is a slab: the rate of 0.1% is on the excess over fifty lakh rupees and not on the whole sum.
Note 2. Serial number 8(iv) also applies to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind, provided to a resident. Before providing it, the person responsible for providing shall ensure that tax has been deducted.
Note 3. For serial number 8(v): (a) the deduction provisions take precedence over any other provision of the Chapter; (b) a payment made by a purchaser or recipient directly to an e-commerce participant for a sale or service facilitated by an e-commerce operator is deemed to be the amount credited or paid by the operator to the participant, and is included in the gross amount; (c) the e-commerce operator is deemed to be the person responsible for paying to the participant; (d) if tax has been deducted on a transaction under this serial number, or the transaction is not liable for deduction under section 393(4) (Table: serial number 11), tax is not deducted on it under any other provision of the Chapter; (e) clause (d) does not apply to amounts received by the operator for hosting advertisements or for other services not in connection with the sale or services in this serial number.
Note 4. Where serial number 8(v) and serial number 8(vi) both apply, tax is deducted only under 8(vi).
Note 5. Serial number 8(iii) takes precedence over any other provision of the Chapter and tax shall be deducted under it.
Note 6. For serial number 8(iv) and (vi): (a) where the consideration, benefit or perquisite (i) is in exchange of another virtual digital asset where there is no part in cash (in respect of serial number 8(iv), as printed), (ii) is wholly in kind, or (iii) is partly in kind and partly in cash but the cash part is not sufficient to meet the tax liability on the whole, the person responsible for paying or providing shall ensure that the tax has been paid before releasing the consideration or providing the benefit or perquisite; (b) "person responsible for providing" means the person providing the benefit or perquisite, or in the case of a company, the company itself including its principal officer. One printing point: clause (a)(i) names serial number 8(iv) although it speaks of an exchange of virtual digital assets; the text is quoted as printed and not corrected.
Definitions that decide the row (section 402)
- Buyer (section 402(6)), for serial number 8(ii): a person whose total sales, gross receipts or turnover from the business carried on exceed ten crore rupees during the immediately preceding tax year, but not a person the Central Government may notify, on conditions it may specify.
- Specified senior citizen (section 402(39)): a resident individual aged seventy-five years or more at any time during the tax year, with pension income and no other income except interest from an account in the same specified bank, who has furnished a declaration in the prescribed form.
- Specified bank (section 402(35)): a banking company as the Central Government may notify.
- Specified person (section 402(37)): any person other than an individual or Hindu undivided family, or one whose turnover exceeded one crore rupees (business) or fifty lakh rupees (profession) in the immediately preceding tax year.
- E-commerce operator, participant (section 402(13) and (14)); electronic commerce (section 402(12)); services for 8(v) includes fees for technical services and fees for professional services (section 402(34)).
Worked examples
Life insurance, 8(i). An insurer (invented) pays Mr. Reddy (invented) a maturity sum of Rs. 5,00,000 under a policy; the part that is income (not exempt under Schedule II, serial number 2) is Rs. 1,50,000. The sum exceeds Rs. 1,00,000. Tax at 2% on the income comprised in the sum: 2% of Rs. 1,50,000 = Rs. 3,000.
Purchase of goods, 8(ii). Tara Retail Private Limited (invented) had turnover above ten crore rupees in the previous tax year and so is a buyer. It buys goods worth Rs. 80,00,000 from one seller, in a transaction on which no other provision requires deduction or collection of tax. Tax is deducted on the sum exceeding fifty lakh rupees: Rs. 80,00,000 - Rs. 50,00,000 = Rs. 30,00,000; 0.1% of Rs. 30,00,000 = Rs. 3,000.
Perquisite, 8(iv). Orbit Marketing Private Limited (invented), a specified person, provides a dealer with a business trip valued at Rs. 50,000, which exceeds the threshold of Rs. 20,000. Tax is 10% of Rs. 50,000 = Rs. 5,000, and under Note 2 the company must ensure that tax has been deducted before providing it.
E-commerce, 8(v). An e-commerce operator (invented) facilitates the sale of goods by a resident participant for Rs. 2,00,000 gross. The threshold is Nil. Tax = 0.1% of Rs. 2,00,000 = Rs. 200.
Virtual digital asset, 8(vi). Mr. Das (invented) transfers a virtual digital asset for consideration of Rs. 3,00,000 to a person who must deduct. The threshold is Nil. Tax = 1% of Rs. 3,00,000 = Rs. 3,000. Under Note 6, if the consideration is wholly in kind, the person paying must ensure the tax has been paid before releasing it.
Need help with TDS on goods purchases, e-commerce or virtual digital assets?
If your business buys goods, runs an online platform, provides business benefits or deals in virtual digital assets, our team can help you work out whether a deduction applies and how Notes 1 to 6 operate. Please contact us through the page for TDS compliance.
Key takeaways
- 8(i): 2% on the income in a life insurance sum, if above Rs. 1,00,000.
- 8(ii): 0.1% on the sum exceeding fifty lakh rupees, buyer with prior-year turnover above ten crore rupees; not where tax is otherwise deductible or collectible.
- 8(iv): 10% of the value of a business benefit or perquisite above Rs. 20,000; ensure tax is deducted before providing it.
- 8(v): 0.1% of the gross amount by an e-commerce operator, Nil threshold.
- 8(vi): 1% on transfer of a virtual digital asset, Nil threshold; Note 4 prefers 8(vi) over 8(v).
Read next
- Section 393 on payments to non-residents
- Section 393(3): winnings, cash withdrawals and payments to partners
- Section 393(4): cases where tax is not deducted
- Section 393: overview
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.